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Have Your December Tax Planning Crisis ASAP!

Both Sarah and Rick are gone the week of Christmas, so it’s important that you bring any foreseeable needs to our attention ASAP.  We are doing our best to look at everyone’s account, but it’s possible we may miss something here and there.

Things would certainly be much quieter at KFG had Romney had won the presidency. That said, we are just swamped harvesting gains, taking dividends out of C-corps, doing Roth Conversions, and gifting.

Take a second to consider these rules of thumb.  If your AGI is regularly over $250,000 as a married couple or $200,000 as a single, or you anticipate it will be going forward, you will probably want to do these by year end:

1.  Take cash and liquid investments out of C-corps (S-corps are unaffected).

2.  Sell and repurchase any mutual fund, stock, or bond investment with a gain of over $10,000 to push the gain into 2012.

3.  Gift away to kids appreciated, non-income producing property that you most likely will never need in retirement.

4. Do Roth Conversions on any IRAs, 403bs,457s that you will probably never dip into for retirement income.

5.  If you need more deductions in 2012, don’t have a retirement plan beyond an IRA or SIMPLE, are a small business owner, and have some discretionary income, set up a 401k NOW.

If your income is under the $250,000/$200,000 threshold, what we hear coming out of Washington is that chances are not much will change for you.

However, if you are suffering business losses this year or your income is very low, it may make sense to do a Roth Conversion to use those losses and fill up a low tax bracket.

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